HedgPoint’s forecast that Brazil’s output next season will increase by 10% has turned the markets around, while Funds and speculators are in no hurry to buy…
Robusta London chart January 1, 2023 right 07/11/2022
At the end of the first session of the week, the price of Robusta coffee on ICE Europe – London reversed to decrease. Futures for delivery in January decreased by 18 USD to 1,851 USD/ton and term for delivery in March decreased by 17 USD to 1,833 USD/ton, significant reductions. Trading volume quite below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. December spot futures fell 5.20 cents to 170.55 cents/lb and March futures fell 5.60 cents to 166.05 cents/lb, sharp declines. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 dong, to range from 40,800 to 41,300 dong/kg.
Coffee prices on both floors reversed and dropped again when more basic information was mixed. However, coffee futures prices missed the opportunity to increase when the USDX dropped again because funds and speculators were still hesitant about the next supply of Brazil, which is expected to be very good. The latest is HedgPoint forecasts Brazil production next season will increase 10% from 60.2 million bags in the 2022 crop.
Contributing to the drop in coffee prices yesterday was also due to the volatility in Brazilian politics when the newly elected President Lula was choosing to find members for the new Government, which would cause a very significant disturbance. . Meanwhile, the midterm elections in the US are entering a drastic phase with the expectation of a Republican victory as voters’ support for the Democratic Party has dropped markedly through recent polls. this.
The reais plummeted 2.41% to 1 USD = 5,1730 R$1, helping Brazilians boost coffee sales, although the price differential in the domestic market remained stable.
Fear of rising interest rates has prevented Funds and speculators from rushing to buy as the New York ICE price is currently at a 15-month low, while Vietnam, a leading producer and exporter of Robusta, has just ended the year. coffee crop 2021/2022 with export volume reaching the highest level in the past 4 years.
English (giacaphe.com)
